TELECOM Digest OnLine - Sorted: Telephone 'Luxury' Tax Now Discontinued

Telephone 'Luxury' Tax Now Discontinued

TELECOM Digest Editor (ptownson@massis.lcs.mit.edu)
Fri, 26 May 2006 16:50:01 EDT

The Treasury Department has, for many, many years, been charging a tax
on telephone calls. They have been sued many times for it, amd I guess
the decision finally came down to not only quit charging it or trying
to collect it, but also to allow the essence of a 'class action'
lawsuit so that people who have paid that tax over the years can apply
for a refund. I think the way this will work is there will be a line
on your tax form next year allowing you to deduct as a credit whatever
had been paid on the telephone tax. I believe this tax began during
the Spanish American War, and like so many government things, it just
stayed on forever for at least a century.

Talk to your tax people about the particulars of how to apply for a
refund, etc.

Patrick Townson

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